Thursday, January 8, 2009

Issues on Service item

Usually for service item, you do not require to set up the Packing slip and Packing slip offset posting account in the Inventory profile. But there is one exception case in Dynamics AX 4.0.

If you have set up the Inventory Cost price in the Item master for a service item, and Inventory module group is having Post physical inventory activated, and Post packing slip in ledger is selected in Purchase parameters, Dynamics AX will give you a posting error if you do not set up these two accounts in the Inventory profile when you are trying to post a Purchase invoice.

Once you have set up these 2 accounts, the purchase invoice posting will have no more error. But in fact, Dynamics AX will not post any entries in these 2 accounts during the posting. It is just a logical bug in posting checking classes. So, it is good to make sure Inventory cost price is always zero for service item.

Another weird cases for service item is in fixed asset acquisition using purchase order. When you purchase a service item and linking it to a Fixed asset number in purchase order line, the invoice posting entry will be
Dr Purchase - receipt, Cr Vendor balance.
But when you try to do the return on the purchase of fixed asset using the same method with negative quantity, Dynamics AX will require you to set up a Stock, receipt account in the inventory posting profile. The posting entries will be
Dr Vendor balance, Cr Purchase, receipt;Dr Stock - receipt, Cr Fixed asset
Thus, it is clearly that when you do purchase return on fixed asset using service item, Dynamics AX 4.0 incorrectly creates an additional return posting entry which is actually for stock item.